Presentation is loading. Please wait.

Presentation is loading. Please wait.

Cost valuation reconciliation. When Usually commences after the external valuation Time dependent upon the complexity and size of project Usually takes.

Published byJonas Paul Modified over 9 years ago

Similar presentations

Presentation on theme: "Cost valuation reconciliation. When Usually commences after the external valuation Time dependent upon the complexity and size of project Usually takes."— Presentation transcript:

1 Cost valuation reconciliation

2 When Usually commences after the external valuation Time dependent upon the complexity and size of project Usually takes two weeks to complete Discussed at Monthly CVR meeting © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 2

3 Fundamental principle Prudence Match expenditure with income Uses the application for payment and the architects certificate to substantiate the valuation/Net sales value of the works © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 3

4 Documentation used External valuation – Identification of: Overmeasure Undermeasure Variations in dispute Claims in dispute Materials on site Undercertification © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 4

5 Information flows © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 5

6 Documentation (contd.) Overmeasure schedule Undermeasure schedule Subcontractor liability build-up Architects/Engineers certificates Contra charge invoices © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 6

7 Definitions Overmeasure – Claimed-Unpaid – Claimed-Paid Definition-“Application for monies in advance of their eligibility” Undermeasure Definition-“Work completed that costs have been incurred for but haven’t been included in the application for payment” – Measured works – Variations Work in Progress Definition-“Work that has been carried out in the period between the cost cut-off date and the valuation date” © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 7

8 Basic principle Net sales value uses the application for payment as the baseline Application adjusted as follows: – Overmeasure – Deducted – Undermeasure - Added – Materials on site - Deleted © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 8

9 Basic principle Net sales value uses the application for payment as the baseline Application adjusted as follows: – Overmeasure – Deducted – Undermeasure - Added – Materials on site - Deleted © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 9

10 Documentation supporting the CVR Internal valuation broken down into a set of allowances Overmeasure schedule Undermeasure schedule Cost statement Subcontractor liabilities Buying reconciliation Materials reconciliation Cost to complete exercise Estimated final account/profit margin Architects/Engineers certificate Narrative explaining variances © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 10

11 Cost statement © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 11

12 Adjustments for work in progress © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 12

13 When to report a loss? © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 13

14 Internal and external bills © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 14

15 Adjustments © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 15

16 Simplified CVR pro forma © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 16

17 A more complex example 17

18 Discussions at CVR meeting Profit release Cash flow Turnover Items in dispute – Variations – Claims Items for management action © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 18

Download ppt "Cost valuation reconciliation. When Usually commences after the external valuation Time dependent upon the complexity and size of project Usually takes."

Similar presentations

Spring 2008, King Saud University Cash Flow Analysis Dr. Khalid Al-Gahtani 1 Payment schedule Materials Mobilization Monthly payments Final Payment Contract.

Spring 2008, King Saud University Cash Flow Analysis Dr. Khalid Al-Gahtani 1 Payment schedule Materials Mobilization Monthly payments Final Payment Contract.
Advanced Valuation Analytics. Balance Sheet 200220032004200520062007 Current Assets- Cash and Equivalents$500,000$550,000$600,000$450,000$300,000$125,000.

Advanced Valuation Analytics. Balance Sheet Current Assets- Cash and Equivalents$500,000$550,000$600,000$450,000$300,000$125,000.
The Operating Cycle and Merchandising Operations

The Operating Cycle and Merchandising Operations
ACCOUNTING FOR MERCHANDISING OPERATIONS

ACCOUNTING FOR MERCHANDISING OPERATIONS
Accounting Principles

Accounting Principles
MERCHANDISING COMPANY

MERCHANDISING COMPANY
Financial Accounting, 3e Weygandt, Kieso, & Kimmel

Financial Accounting, 3e Weygandt, Kieso, & Kimmel
RESOURCE PLANNING Learning Objectives Produce resource charts from bar charts Demonstrate how, for example, activity float can be used to modify a schedule.

RESOURCE PLANNING Learning Objectives Produce resource charts from bar charts Demonstrate how, for example, activity float can be used to modify a schedule.
Statement of Cash Flows

Statement of Cash Flows
FA3 – Lesson 4 Complex debt and equity instruments 1.Classification: Debt vs. equity 2.Debt convertible at investor’s option 3.Debt convertible at issuer’s.

FA3 – Lesson 4 Complex debt and equity instruments 1.Classification: Debt vs. equity 2.Debt convertible at investor’s option 3.Debt convertible at issuer’s.
Risk and Uncertainty © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 1.

Risk and Uncertainty © 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 1.
Valuations and interim certificates. Purpose Value the works taking account of: – the physical work done on site; – any extra work ordered by the client;

Valuations and interim certificates. Purpose Value the works taking account of: – the physical work done on site; – any extra work ordered by the client;
The Cash Flow Statement

The Cash Flow Statement
RECEIVABLES & SALES CHAPTER FIVE.

RECEIVABLES & SALES CHAPTER FIVE.
ACCOUNTING PRINCIPLES SIXTH CANADIAN EDITION Prepared by: Debbie Musil Kwantlen Polytechnic University Chapter 3 Adjusting the Accounts.

ACCOUNTING PRINCIPLES SIXTH CANADIAN EDITION Prepared by: Debbie Musil Kwantlen Polytechnic University Chapter 3 Adjusting the Accounts.
BAD DEBTS Chapter 8 p. 407-411. Bad Debts = a term used to describe amounts that cannot be collected The reporting of bad debts is governed by the matching.

BAD DEBTS Chapter 8 p Bad Debts = a term used to describe amounts that cannot be collected The reporting of bad debts is governed by the matching.
Financial Information and Accounting Concepts

Financial Information and Accounting Concepts
John Wiley & Sons, Inc. © 2005 Chapter 18 The Statement of Cash Flows Prepared by Naomi Karolinski Monroe Community College and and Marianne Bradford.

John Wiley & Sons, Inc. © 2005 Chapter 18 The Statement of Cash Flows Prepared by Naomi Karolinski Monroe Community College and and Marianne Bradford.
WEEK 12: ACCOUNTING CONCEPTS BUSN 102 – Özge Can.

WEEK 12: ACCOUNTING CONCEPTS BUSN 102 – Özge Can.
Project risk and control. Tender risk Programme and method – Tightness of completion LAD’s Extent of change – Construction method Temporary works Change.

Project risk and control. Tender risk Programme and method – Tightness of completion LAD’s Extent of change – Construction method Temporary works Change.

Similar presentations

Ads by Google